Why is having auto insurance important?

A:

Quick Answer

Auto insurance proves important for several reasons: it offers drivers financial protection in accidents, reduces or eliminates costly fees arising from automobile accidents and provides compensation for vehicle loss and damage sustained through accidents, natural events, theft and damage, say experts at Allstate. Auto insurance essentially acts like other types of insurance, such as home, life and medical insurance. Customers purchase auto insurance for a certain price, and in turn receive a set amount of financial compensation for devastating events and losses falling under the scope of coverage.

Keep Learning

When choosing auto insurance, consumers select among various plans and coverage options. In many places, states have minimum requirements for auto insurance policyholders, which insurance providers offer through basic plans. Some drivers supplement their insurance coverage with add-on services or bonuses, such as round-the-clock roadside assistance and lifetime repair coverage for cars. In addition to securing drivers and their personal vehicles, auto insurance protects against damage and legal action taken by other motorists.

Insurance holders also enjoy relief of medical payments in the event of automobile accidents through holding auto insurance policies. Insurance rates vary among providers and policy types. Additionally, Liberty Mutual asserts that discounts, credits and bonuses vary among states and are contingent upon state laws and regulations. Therefore, people shopping for insurance should check with insurance providers before purchasing plans to identify their precise coverage and benefits.